October 10, 2019

Markets were higher Thursday on (faint) hopes of progress in the China / USA trade talks.

The S&P 500 was up 0.6% and Toronto was up 0.3%.

TFI International was up 3.6%. 

Couche-Tard was down 1.9%. It may be under pressure due to its exposure to selling vaping products.

lulu lemon was up 3.1%.

Given the slow down in global growth and apparently a decline in global trade and given the potential impeachment of Trump, I think the stock market is certainly vulnerable to declines. It always is really, but it seems more so at this time. 

Linamar’s price is already  down a lot and while it looks very cheap it could be vulnerable. They have already telegraphed to some extent that their Q3 report will be weak and their outlook will also be deteriorating. They remain optimistic about the future but the stock market may focus on near-term issues. Progress on trade talks and on the GM strike would be helpful.

I remain optimistic about Toll Brothers as lower interest rates are a positive. 

See also the update on Melcor just below this post.


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